Finance Act 2008

VATA 1994

34 (1) Section 77 (assessments: time limits and supplementary assessments) is amended as follows.

(2) In subsection (1)(a) and (b), for “3 years” substitute “4 years”.

(3) For subsection (4) substitute—

“(4) In any case falling within subsection (4A), an assessment of a person (“P”), or of an amount payable by P, may be made at any time not more than 20 years after the end of the prescribed accounting period or the importation, acquisition or event giving rise to the penalty, as appropriate (subject to subsection (5)).

(4A) Those cases are—

(a) a case involving a loss of VAT brought about deliberately by P (or by another person acting on P’s behalf),

(b) a case in which P has participated in a transaction knowing that it was part of arrangements of any kind (whether or not legally enforceable) intended to bring about a loss of VAT,

(c) a case involving a loss of VAT attributable to a failure by P to comply with a notification obligation, and

(d) a case involving a loss of VAT attributable to a scheme in respect of which P has failed to comply with an obligation under paragraph 6 of Schedule 11A.

(4B) In subsection (4A) the references to a loss of tax brought about deliberately by P or another person include a loss that arises as a result of a deliberate inaccuracy in a document given to Her Majesty’s Revenue and Customs by that person.

(4C) In subsection (4A)(c) “notification obligation” means an obligation under—

(a) paragraph 5, 6, 7 or 14(2) or (3) of Schedule 1,

(b) paragraph 3 of Schedule 2,

(c) paragraph 3 or 8(2) of Schedule 3,

(d) paragraph 3, 4 or 7(2) or (3) of Schedule 3A, or

(e) regulations under paragraph 2(4) of Schedule 11.”

(4) In subsection (5)—

(a) in paragraph (a), for “3 years” substitute “4 years”, and

(b) omit paragraph (b) and the “and” before it.